United Kingdom The United Kingdom is second only to France in the total amount of postwar aid, military and economic, received from the United States, and is first in receipts of nonmilitary aid, which totaled $6,870 million up to the end of June 1954. The United Kingdom, moreover, is a key country in the achievement of many of the United States postwar economic objectives, such as restoration of normal international trade and the reestablishment of currency convertibilities. A review of the aid programs for the United Kingdom, accordingly reflects most of the administrative and policy problems, successes and failures, of the overall aid operations, and can well serve as a guide to any further aid activities in any geographic area. Background The United Kingdom has been for many years the hub of a worldwide economic and financial empire, based on a highly industrialized economy at home. Since Great Britain is deficient in industrial raw materials, except coal, and is unable to feed its crowded population, its industry is essentially a processing one, based on very large imports of raw materials and foodstuffs and correspondingly large exports of manufactured goods and of services. Weakening Economy Even before the first World War, this industrial structure was beginning to show weaknesses here and there. Competitive export industries were developing in other countries, notably Germany and the United States. Long time trends in the terms of trade appeared to give some evidence of going against the United Kingdom. Selfsufficiency objectives stimulated the industrialization of many British export markets. Old established and intrenched industries lacked the flexibility to make the necessary adjustments to changing conditions. The first and second World Wars aggravated all these problems. The interwar period was one of largely unsuccessful attempts to accommodate to growing economic and financial difficulties. Consequently, the country emerged from the second World War suffering not only from severe war damage, tangible and intangible, but also from structural stresses and strains which had been accumulating over |